Sunday, 30 November 2014

5 reasons why you may never be rich

These days I kind of find it hard to hold on to
money! And I have a lot to take care of though,
Lord have mercy, so despite all this, I never feel
like I have got none, but so much cash (We thank
the Lord ), but for someone out there who doesn't
have money and feels they can never get rich, I
found some reasons why you really can never
become rich, doubt me? then keep reading.
There’s an interesting maxim about how long
wealth actually stays with a person and their
descendants. The saying is three generations,
tops: one to make it, one to spend it, and the third
to blow it. Of course, there are exceptions to this
rule, but have you ever sat down and seriously
thought about wealth and what it means to you?
Or do you figure, “What the heck, I’ve always been
broke, my forefathers were broke; it’s
generational” – it’s just a rite of passage of sorts.
If you feel that wealth is out of your reach, you
aren’t alone. According to some experts, there are
millions of ‘clueless potential millionaires’ who
could be at the top of the wealth ladder if they only
reined in a few bad habits. However, you may be a
skeptic, and rightly so. Being wealthy means
different things to different people. But according to
the experts, there are financial mistakes many
people make that keep them away from their
possible wealth.
What is Wealth Anyway?
Most people do not equate wealth with a mansion
or a big yacht. In fact, a scanty 7% of people
surveyed associate wealth with material
possessions like cars, houses and boats. Rather,
to many, being rich means having just enough to
not worry about the next payday – that’s
according to 33% of those questioned. An
additional 26% define being wealthy, or rich, as
having more than enough money to quit their jobs.
Still, few people place an actual dollar amount on
what it means to be wealthy. Only 17% felt that
being rich means having at least $1 million or
more, and 11% stated a six-figure yearly income
would make them feel rich. Yet most people who
are rich don’t even consider themselves rich.
Maybe it’s because being ‘rich’ or ‘wealthy’ has
very little to do with material possessions, and
more to do with how people feel about themselves.
Nonetheless, according to financial experts you
will never be rich if you are bogged down by
anything on the following list:
Reasons Why Someone Will Never Be Rich
1. Overspending
If you have a ferocious appetite for spending
beyond your means, you’re not alone. According to
a survey, of the 52% of people who habitually
overspend, many balance the shortfall by taking
from their savings, and 22% rely on credit cards.
Blowing all your money each month is not a
realistic pathway to wealth. Start tracking where
your money goes each month, check where you
can cut back, and create a ‘realistic’ budget that
allows you to pay your bills and invest in a
retirement account or an emergency fund.
2. Not Saving Enough
Welcome to the club! The personal savings
percentage in the US is a measly 4.9% of
disposable income. Saving should become a
priority if you want to accumulate wealth. Start
with an emergency fund. Once your emergency
fund is substantial, you can redirect small
amounts toward other goals like purchasing a
home or paying for college.
3. You Have Too Much Debt
Certain debts are a precursor to financial success,
like purchasing real estate or starting a business;
however, a high-interest credit card balance is
not. Pay off credit cards with the highest rates
first.
4. You Don’t Have a Plan
Without a definite, clearly defined plan, becoming
rich will seem like an unbelievable dream. This
alone will solidify your excuses for overspending
and not saving. As the saying goes, “Those who
fail to plan, plan to fail.” Putting together a financial
plan may seem tedious, but it doesn’t have to be,
and you can get used to it.
5. You Don’t Have an Emergency
Fund
Experts say you need at least six months of
income saved in case of an emergency. Life is
tricky, and not having some type of safety net can
turn a comfortable situation into a disaster.
In conclusion, Change your ways and
you could find yourself well on the way down
the road to riches.

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